Tax Credits - Will I Still Qualify If I Finish My Job?

barberbookie

Hello ,

I am just after a bit of sound advice please.
My current situation is this.
I work full time and earn £28000 ayear gross
My partner does not work. She looks after the children
We currently receive the minimum amount of tax credits ( around £10 a week )
My partner has not worked since we had the children ( around 9 yaers ) and she now wants to go back to work , part time to start with ( around 20-25 hours ) and then maybe full time.
This is the question:

If i was to voluntarily finish my job , and my partner take up her part time job , leaving me to be the main child carer , would i still be able to claim tax credits based on our new circumstances and our new income which will obviously be less.

Will the tax credits office frown upon this , or is it as staight foward as meeting the requirements based on our new income.

Regards

Tony

AnxiousMum

Why would you quit your job to become full time carer, so that you can reduce your household income to part time hours only? Can you afford to provide for your family on your wife working only 20-25 hours per week? I'm sure your tax credits would increase, but I doubt it would increase anywhere near enough to replace your salary.

Caz3121

you would but as anxious mum said this will nowhere bridge the gap - assume 2 kids and earn £28k total salary + tax credits = approx £28,500
assume 2 kids earn £10k + tax credits of around £8k = total approx £18k...that is a huge drop in household income

barberbookie

Hi Anxious Mum ,

To be totally honest the situation would suit me for the time being. I have always wanted to take some time out. I am 37 now and have been working continuosly since i was 15. I do have some savings and my wife would also contribute from her part time job. I know it would be no-where near the figure we are bringing home now , but that is why i need to know if the tax credits would pay based on our new circumstances to top it up. I have done all the figures and we know we would be ok. This would not be a rash desicion , although i can see how it would be to some people. At some stage i would go back into full time employment.
This would all only be possible if i could claim the correct tax credit based on our new circumstances. That is what i need to know before i do anything , and i suppose the only way of truly knowing is to speaK to them direct.

barberbookie

Thanks for your response Caz. I know what you are saying but i have done the math. This would only be possible though if i could claim the tax credits that i think i would be due

mitchaa

1) How many children do you have?
2) Do you have a mortgage or do you own your home outright? If not bought, do you rent and how much?

As you would be giving up work, you would not qualify for JSA as you wouldn't be looking for work. £28000 is an income of around £1750pm every month.

Will you get the same £1750 in from an increase in benefits and your partner working? How much is she likely to earn for 20-25hrs per month?

barberbookie

Hi Mitchaa ,

Some answers to your questions. We have 2 children and have no mortgage. We paid our mortgage off last year and own our home outright ( this obviously is one of the factors ). You are correct. I would not claim or be entitled to JSA as i am not seeking work.
I have worked out using the tax credits calculator that i would be entitled to around £170 week based on my wifes income of around £6000 a year working 16 - 20 hours/week
That would give us an income of around £16000 including family allowance payments ( £120 month ). This is a drop of £12000 , but with little outgoings ( ie no mortgage) , and some savings , my figures indicate we are good to go , but only if the tax credits are correct , which they appear to be based on the calculator.

Morgan_Ree

So you basically want to give up work and let tax credits suppliment your income, yes?
How old are your children?

barberbookie

To an extent Morgan Ree , yes. My children are 9 and 7. I am looking at this oportunity to have year or so out with my children , before i got back into mainstream employment. It suits my wife and it suits me. I am sorry if this sounds somewhat selfish , i dont mean it to come across that way and i am not taking this lightly.

Caz3121

what a fortunate position you are in with being mortgage free. The only things to be aware of are tax credits are based on the previous years income normally you will need to contact and give an estimate for this year and this will be the total estimated household income for the year so will include your income up till the switch over so may be 6 months @ £28k + 6 months @ £6k so total income £17k so will be lower than a full year @ £6k so your £170 per week may drop to around £100 per week. Plus if you provide an estimate there is no £25k disregard so if anything you should overestimate

Oldernotwiser

Are you sure that you will find it easy to find a similar job after a year of unemployment? What would happen if it took you several years to get another job and that was on a much lower salary?

Have you asked your current employer whether they offer some kind of career break scheme that would allow you to do what you want with the security of a job to return to?